Businessweek reports that Apple and Microsoft are currently in negotiations to replace Google as the default search engine on the iPhone with Microsoft’s Bing. The negotiation have reportedly been underway for weeks.

Businessweek quoted the increasing rivalry between Google and Apple as one of the reasons behind the discussions.

“Apple and Google know the other is their primary enemy,” says one of the people, who’s familiar with Apple’s thinking. “Microsoft is now a pawn in that battle.”

If the negotiations are successful, it could also mean that Bing could eventually replace Google as the default search engine for Apple’s desktop version of Safari as well.

Even if Apple and Microsoft do come to an agreement, Businessweek notes that this may just be a time-buying move on Apple’s part who is reportedly working on their own search technology.

- source: businessweek.com

Boy Genius Report claims to have received information from a source regarding iPhone OS 4.0, which is rumored to be introduced at next week’s media event in San Francisco. According to the source, iPhone OS 4.0 will be limited to the iPhone 3G and 3GS (presumably including at least more recent iPod touch models and omitting the original iPhone) and will incorporate solutions for multitasking by running applications in the background and a revamped user interface for easier navigation.

• There will be multi-touch gestures OS-wide. (Would make sense for that as the rumored OS for the iTablet is close if not the same as the iPhone)
• “A few new ways” to run applications in the background — multitasking.
• Many graphical and UI changes to make navigating through the OS easier and more efficient. We haven’t had this broken down, but we can only hope for improved notifications, a refreshed homescreen, etc.
• The update will supposedly be available for only the iPhone 3G and 3GS, but will “put them ahead in the smartphone market because it will make them more like full-fledged computers” more than any other phone to date. Everyone is “really excited.”
• The last piece of information is the most vague, but apparently there will be some brand new syncing ability for the contacts and calendar applications.

The ability to run iPhone applications in the background has been near the top of many users’ wish lists, but Apple has yet to implement full backgrounding and multitasking due to its effect on performance and battery life, instead opting to deploy push notifications as a means for closed applications to serve data to users.

- source: boygeniusreport.com

Well, it’s around that time of year where rumors about a new iPhone and new services coming to AT&T and Apple start pouring in. A new rumor today, AT&T launching a Phone Trade-In program in June and perhaps in time for iPhone 4G or better yet, iPhone 3G 32GB? A 32GB iPhone has been in great demand and yet Apple hasn’t released it.

BGR claims they got some details on a Phone Trade-in program being planned to launch in June by AT&T.

Details:

• The phone being traded in can’t be more than two years old and must be in fair shape.
• The new phone will not have any subsidies applied to it, so basically whatever your trade-in covers will be your “savings”
• Trade-ins will be valued from $50 to $200

This seems rather reasonable. Phil Schiller’s, Apple’s Senior Vice President of Worldwide Product Marketing made a statement to David Pogue of New York Times at Macworld 2009 that iPhone’s annual product cycle is June, so the timing of this iPhone Trade-in program is rather interesting.

If the iPhone 4G or iPhone 3G 32GB or even one of the iPhones in our iPhone Concept post is released will you be upgrading? And do you think this iPhone Trade-in program is a good idea? Let us know in the comments!